PRECIOUS METALS - Gold snaps losing streak ahead of U.S. inflation print
Istanbul, October 10 (Hibya) - Gold prices recovered slightly on Thursday to snap a six-session losing streak, while traders remain focused on a key U.S. inflation reading for insights on the Federal Reserve's potential rate reduction this year.
Spot gold was up 0.2 percent at $2,611.94 per ounce. U.S. gold futures edged about 0.1 percent higher to $2,629.40.
The U.S. dollar strengthened to a 10-week peak against the yen, and Treasury yields climbed as investors continued to price in a less aggressive monetary easing cycle from the Fed.
Investors await the September U.S. Consumer Price Index (CPI), due at 1230 GMT. The index is expected to show core inflation holding steady at 3.2 percent year-on-year. Their focus will shift to Friday's U.S. Producer Price Index data. By the end of the day, when the CPI data comes out, investors expect gold prices to challenge the 2,640 dollar level, according to the analysts.
San Francisco Fed President Mary Daly expressed strong support on Wednesday for last month’s half-percentage-point rate cut, indicating that one or two more cuts may be likely this year if the economy evolves as expected.
The central banks are globally seen to purchase gold and believe that uncertainty around the fast-approaching U.S. election should support gold according to the analysts, adding that they forecast gold to reach $2,850 per ounce by mid-2025.
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